Boardroom Battle: BharatPe Says Company Reserves Right to Take Action Against Ashneer Grover

Last month, BharatPe had hired Alvarez to conduct a governance review of the firm, and PwC was also roped in to conduct an audit

Ashneer Grover had pleaded before the arbitrator that the preliminary investigation was invalid because it was in violation of shareholder agreement and articles of association. Image: Getty

New Delhi: Ashneer Grover, BharatPe’s founder and managing director (MD), who resigned from the board of the fintech firm on Tuesday, is yet to get out of the woods as the company in a statement said that the board reserves the right to take action against him based on the findings of the report.

Responding to Grover’s resignation from the company’s board, BharatPe in a statement said, “Ashneer Grover resigned as MD and board director of BharatPe minutes after receiving the agenda for upcoming board meeting that included submission of the PWC report regarding his conduct and considering actions based on it. The board reserves the right to take action based on the report’s findings.”

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The dramatic midnight resignation of #AshneerGrover ahead of the crucial #BharatPe board meeting came as an independent PwC ’governance review’ found him guilty of financial irregularities worth several crores along with his wife #MadhuriJainGrover, according to sources.

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- IANS (@IANS) 1 Mar 2022

Grover’s resignation comes after almost two months of high drama where he locked horns with other board members and key investors.

Last month, BharatPe said that it had hired Alvarez to conduct a governance review of the firm, and PwC was also roped in to conduct an audit.

Grover had filed an arbitration plea with the Singapore International Arbitration Centre (SIAC) claiming the fintech firm’s probe against him was illegal. However, he failed to secure an interim relief from the SIAC which has allowed an investigation against him on alleged financial irregularities and governance lapses at the company.

Grover had pleaded before the arbitrator that the preliminary investigation was invalid because it was in violation of shareholder agreement and articles of association, and BharatPe has no authority to conduct such an investigation. But the emergency arbitrator (EA) has rejected all the five grounds of his appeal and denied a single relief.

Grover last month went on a two-month leave of absence following allegations of using abusive language against Kotak Mahindra Bank staff and fraudulent practices.

Last week, the fintech company terminated the services of Grover’s wife, Madhuri Jain Grover, who was heading the controls at BharatPe, as the investigation found misappropriation of funds during her tenure in the company.